Core Insights - RLI Corp. reported Q3 2025 underwriting income of $60.5 million, an increase from $40.7 million in Q3 2024, with a combined ratio of 85.1% compared to 89.6% in the same period last year [1][2] Underwriting Performance - The underwriting income in Q3 2025 was significantly supported by favorable development on prior years' loss reserves, contributing $13.7 million, while the previous year added $18.1 million [2] - The Property segment was the primary driver of underwriting income, contributing $50.4 million, with the Surety and Casualty segments adding $5.6 million and $4.5 million, respectively [2] Financial Metrics - Gross premiums written remained stable at $510 million in Q3 2025, while net earnings rose to $124.6 million, up from $95 million in Q3 2024 [3] - Net investment income for Q3 2025 increased by 12% to $41.3 million [3] Strategic Commentary - The company expressed satisfaction with the quarter's results, highlighting a disciplined underwriting approach and effective strategy execution in a competitive market [3] - Favorable reserve development and minimal catastrophe activity during the quarter were noted as factors supporting strong underwriting results [4] - Investment income growth and solid portfolio returns led to a 26% increase in book value per share since year-end 2024, reflecting the strength of the company's team and diversified product portfolio [4]

Core Insights - RLI Corp. reported quarterly earnings of $0.83 per share, exceeding the Zacks Consensus Estimate of $0.62 per share, and showing an increase from $0.65 per share a year ago, resulting in an earnings surprise of +33.87% [1] - The company posted revenues of $448.97 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.49% and increasing from $426.18 million year-over-year [2] - RLI Corp. shares have declined approximately 27.7% year-to-date, contrasting with the S&P 500's gain of 13.3% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.74, with projected revenues of $450.3 million, and for the current fiscal year, the EPS estimate is $3.12 on revenues of $1.77 billion [7] - The estimate revisions trend for RLI Corp. was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Insurance - Property and Casualty industry, to which RLI Corp. belongs, is currently ranked in the top 20% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Core Insights - RLI Corp. reported third quarter 2025 net earnings of $124.6 million ($1.35 per share), a 31.1% increase from $95.0 million ($1.03 per share) in the same quarter of 2024 [1][17] - Operating earnings for the third quarter of 2025 were $77.0 million ($0.83 per share), up 27.4% from $60.4 million ($0.65 per share) in 2024 [1][17] - The company achieved an 85.1 combined ratio, indicating disciplined underwriting and effective strategy execution in a competitive market [3][21] Financial Performance - Comprehensive earnings for the quarter were $152.3 million ($1.65 per share), down from $175.3 million ($1.90 per share) in 2024 [6][17] - Net investment income increased by 12% to $41.3 million compared to the same period in 2024 [5][11] - Book value per share rose by 26% since year-end 2024, reaching $20.41 [11][18] Underwriting Results - Underwriting income for the third quarter was $60.5 million on an 85.1 combined ratio, compared to $40.7 million on an 89.6 combined ratio in 2024 [4][11] - Favorable development in prior years' loss reserves contributed $13.7 million to underwriting income in 2025 [4][11] - The breakdown of underwriting income by segment showed significant improvement in property and casualty segments [5][11] Dividends and Shareholder Returns - RLI paid a regular quarterly dividend of $0.16 per share, consistent with the previous quarter [7][17] - Cumulative dividends paid over the last five years exceeded $975 million [7] Investment Portfolio - The investment portfolio's total return was 3.0% for the quarter and 7.4% for the nine months ended September 30, 2025 [5][11] - Fixed income investments at fair value increased by 11.4% to $3.54 billion compared to year-end 2024 [18][19]

EXHIBIT 99.1 RLI REPORTS THIRD QUARTER 2025 RESULTS PEORIA, ILLINOIS, October 20, 2025 – RLI Corp. (NYSE: RLI) – RLI Corp. reported third quarter 2025 net earnings of $124.6 million ($1.35 per share), compared to $95.0 million ($1.03 per share) for the third quarter of 2024. Operating earnings(1) for the third quarter of 2025 were $77.0 million ($0.83 per share), compared to $60.4 million ($0.65 per share) for the same period in 2024. All share and per share data in this release reflect the two-for-one stoc ...

Core Insights - RLI Corp. is a prominent insurance holding company offering a diverse range of property and casualty insurance products, recognized for its focus on unique and higher-risk areas [1] Company Performance - RLI reported net earnings of $124.3 million and operating earnings of $78.1 million in Q2 2025, reflecting continued growth in book value [4] - The company achieved a 20% revenue growth in Q2 2025, with operating earnings per share reaching $0.84, surpassing the consensus estimate of $0.79 [3][6] - RLI maintained a solid operating cash flow of $175 million for Q2 2025 and experienced a 16% increase in investment income [4] Analyst Sentiment - The consensus price target for RLI's stock has declined from $113.5 to $62 over the past year, indicating a shift in analyst sentiment [2][6] - RBC Capital has set a higher price target of $123, reflecting confidence in RLI's future performance despite market fluctuations [2][6] Market Conditions - Economic fluctuations, regulatory changes, and natural disasters significantly influence the insurance industry, impacting RLI's performance and stock target price [3] - RLI achieved an 84.5% combined ratio and maintained underwriting profitability across all segments, despite facing challenges in certain market segments [5] Industry Trends - Increased competition and changes in consumer demand may affect RLI's outlook and stock valuation, but the company's strategic focus on safety and risk selection positions it well for future opportunities [5]

Core Insights - RLI Corp. is expected to report quarterly earnings of $0.61 per share, reflecting a year-over-year decline of 6.2%, with revenues projected at $445.65 million, an increase of 4.6% from the previous year [1] - Over the past 30 days, the consensus EPS estimate has been revised downward by 5.6%, indicating a reassessment by analysts [1][2] Financial Metrics - Analysts estimate 'Net premiums earned' to be $404.26 million, a year-over-year increase of 3.8% [4] - 'Net investment income' is forecasted to reach $41.40 million, reflecting a 12.8% increase from the prior year [4] - 'Net premiums earned - Property' is estimated at $129.53 million, indicating a decline of 2.8% from the previous year [4] Operating Expenses and Losses - 'Net operating expenses - Total' are expected to be 38.2%, up from 37.7% reported in the same quarter last year [5] - The consensus for 'Net loss & settlement expenses - Total' stands at 55.4%, compared to 51.9% in the same quarter last year [6] - 'Underwriting income (loss) - Total' is projected to reach 93.6%, an increase from 89.6% reported in the same quarter last year [6] Specific Underwriting Income Estimates - 'Underwriting income (loss) - Surety' is expected to be 86.6%, up from 78.8% year-over-year [7] - 'Underwriting income (loss) - Property' is projected at 93.5%, compared to 77.2% in the previous year [7] - 'Underwriting income (loss) - Casualty' is anticipated to be 99.1%, slightly up from 98.8% year-over-year [7] Operating Expenses Breakdown - 'Net operating expenses - Property' are expected to reach 32.4%, compared to 31.4% in the same quarter last year [8] - 'Net operating expenses - Casualty' are projected at 35.8%, slightly down from 36.0% reported in the previous year [8] Market Performance - Over the past month, RLI Corp. shares have returned -1.5%, while the Zacks S&P 500 composite has increased by 1% [8]

Core Viewpoint - RLI Corp. is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ending September 2025, with the actual results being crucial for its near-term stock price movement [1][2]. Earnings Expectations - The upcoming earnings report is scheduled for October 20, and if the results exceed expectations, the stock may rise; conversely, a miss could lead to a decline [2]. - The consensus estimate for RLI Corp. is an earnings per share (EPS) of $0.59, reflecting a year-over-year decrease of 9.2%, while revenues are projected to be $445.94 million, an increase of 4.6% from the previous year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised down by 2.03%, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for RLI Corp. is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +8.65%, although the stock holds a Zacks Rank of 4, complicating predictions of an earnings beat [12]. Earnings Surprise History - In the last reported quarter, RLI Corp. was expected to post earnings of $0.75 per share but exceeded this with actual earnings of $0.84, resulting in a surprise of +12.00% [13]. - Over the past four quarters, RLI Corp. has surpassed consensus EPS estimates three times [14]. Industry Comparison - In comparison, Progressive (PGR), another player in the insurance industry, is expected to report earnings of $5 per share for the same quarter, indicating a year-over-year increase of 39.7%, with revenues projected at $22.33 billion, up 14.9% [18][19]. - Progressive's consensus EPS estimate has been revised down by 1.3% over the last 30 days, but it currently has an Earnings ESP of +2.33% and a Zacks Rank of 3, suggesting a likely earnings beat [19][20].

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Core Viewpoint - RLI Corp. is set to release its third quarter 2025 earnings on October 20, 2025, followed by a conference call on October 21, 2025, to discuss the results [1]. Company Overview - RLI Corp. is a specialty insurer focused on niche property, casualty, and surety markets, providing deep underwriting expertise and superior service to both commercial and personal lines customers across the nation [2]. - The company operates through its subsidiaries, including RLI Insurance Company, Mt. Hawley Insurance Company, and Contractors Bonding and Insurance Company, all of which hold an A+ "Superior" rating from AM Best Company [2]. - RLI has a strong track record of financial performance, having paid and increased regular dividends for 50 consecutive years and achieved underwriting profits for 29 consecutive years [2].

Group 1 - RLI Corp. has experienced weak price performance, which is unusual for this specialty insurance company [2] - The pressures on RLI Corp.'s stock are attributed to various factors affecting its performance [2] - The Value Lab offers a portfolio with real-time updates and regular global market news reports, focusing on long-only value ideas [1][2] Group 2 - The Valkyrie Trading Society consists of analysts sharing high conviction ideas that are expected to generate non-correlated and outsized returns [3] - The society operates as long-only investors, focusing on developed market opportunities [3]